Informatica Corporation (NASDAQ: INFA), the world’s number one independent leader in data integration software, today announced that it has completed the acquisition of Siperian, a leader in the Master Data Management (MDM) infrastructure technology category. MDM provides a holistic, single view of foundational business entities, commonly referred to as master data such as customers, employees, citizens, locations and products. Successful MDM projects facilitate better operational efficiency, higher customer loyalty and successful compliance efforts.
Informatica will acquire Siperian, on a fully diluted basis, for approximately $130 million in cash.
“Our acquisition of Siperian will expand Informatica’s addressable market with an additional high-growth, adjacent technology category, MDM infrastructure, and will further strengthen our key strategic partnerships,” said Sohaib Abbasi, chairman and CEO, Informatica. “Informatica Data Integration and Data Quality have a proven track record of enabling successful MDM projects. Together, we will advance Informatica as a leader in this exciting MDM Infrastructure category.”
For MDM projects, customers have a choice of infrastructure and application products ranging in approach from model-your-own to near turn-key packaged solutions. Siperian and Informatica offer leading products in the MDM Infrastructure category that complement and enable MDM Applications. According to an independent report, 49% of organizations were planning to implement or expand their use of MDM software in 2009 (“Trends 2009: Master Data Management”, Forrester Research, Inc., October 2009). Another leading analyst firm forecast 2010 software spend in the MDM Infrastructure market at $1 billion, half of the total MDM software market, growing at a rate of 20 percent.
Siperian is an award-winning visionary pioneer offering three well-differentiated and proven capabilities. Siperian delivers a multidomain MDM platform to optimize business decisions across multiple entities or considerations. With easy-to-configure capabilities, Siperian expedites time-to-results. And, with built-in ratings metrics for trustworthiness, business stakeholders have greater confidence in their master data.
The new MDM Infrastructure category expands Informatica’s addressable market. The existing product integration and unified architecture, based on the common Informatica Identity Resolution technology, will facilitate cross-sell opportunities for Informatica Data Integration and Data Quality products. The combination of Siperian products and the comprehensive Informatica Platform will deliver even more differentiated value to customers such as use of Informatica B2B Data Exchange to share master data across the supply chain partner network.
“Siperian is a recognized leader and provides the only market-proven, multidomain MDM platform,” said Peter Caswell, CEO, Siperian. “In combination with Informatica, we are more strongly positioned to deliver a complete range of data integration and data management solutions to empower today’s data-driven enterprises.”
More than 60 customers worldwide successfully rely on Siperian including leaders in life sciences and financial services. These customers include: Pfizer, Shire, Bank of America, State Street Bank and Lexis Nexis. A study of 400 MDM projects conducted by the industry analyst firm Aberdeen Group, concluded that organizations relying on Siperian achieved more than 50 percent better business results, as measured by customer retention and cross-sell rates, compared to those relying on IBM.
Siperian was founded in April 2001, and has its headquarters in Foster City, Calif.
Forward Looking Statements
This press release contains forward-looking statements regarding the expected benefits of the transaction to customers, the expected benefits to Informatica’s addressable market and the expected benefits to Informatica’s technology leadership. Such statements involve risks and uncertainties, and actual results may differ materially from the results described in this press release. The potential risks and uncertainties that could cause actual results to differ include, among others, risks related to our ability to (1) successfully integrate Siperian, its products, technologies and employees into Informatica and achieve expected synergies, (2) compete successfully in this highly competitive and rapidly changing marketplace, (3) retain key employees and (4) other factors affecting the operation of the respective businesses, as well as those risks and uncertainties included under the caption “Risk Factors” in Informatica's report on Form 10-Q for the quarter ended September 30, 2009, which is on file with the SEC and is available on the company’s investor relations website at www.informatica.com. All information provided in this release is as of January 28, 2010, and Informatica undertakes no duty to update this information.